Regulation may be Good for the Securities Industry

Sep 2, 2011

The behemoth Dodd-Frank Wall Street Reform and Consumer Protection Act may be seen by many in the financial sector as a major burden, but a Treasury official recently argued that it would help businesses.

CFO World reports that Treasury Assistant Secretary for Financial Markets Mary John Miller made the case financial overhaul would serve as "a baseline for economic growth" at a Securities Industry and Financial Markets Association meeting in July.

Miller said by July of next year, she felt confident there would be much more clarity surrounding the multitude of Dodd-Frank regulations. The source quoted her as saying the rulemakers had a "pragmatic and balanced" plan for the timing, and that they were prioritizing getting the rules right the first time rather than rushing the process.

The assistant secretary added that the U.S. financial system's reputation was on the line, which is why there needs to be a framework for increasing oversight of derivatives and securities.

However, others argue the regulations will hurt businesses.

In a piece for Bloomberg, Ramesh Ponnuru argued that increased rules for healthcare, the environment and the financial industry are not what the economy needs.

"Perhaps Congress and the president should try putting recovery before regulation," he said.